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CostHelper > Home and Garden  > Electrical, HVAC & Energy Efficiency > Propane

Propane Cost

How Much Does Propane Cost?

low cost2005-2010 Average: $1.73-$2.66 a gallonaverage cost2011-2012 Heating Season Average: $2.74-$2.88 a gallonhigh costAverage Winter Total: $2,000-$5,500
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Propane is a gas that becomes liquid under moderate pressure. As a heating fuel, propane is stored in a pressurized tank and measured by the gallon. When released into supply lines, the propane vaporizes back into a gas. Propane is the most common type of liquid petroleum gas, which is also called liquefied petroleum gas, LPG, GPL, LP Gas or autogas.

Typical costs:

  • During the heating season (October to March), the federal Energy Information Administration publishes weekly average propane prices[1] in the United States. In October 2013, the average residential price was $2.37. From October 2012 to March 2013, the average weekly price varied from from $2.195-$2.319, or about $880-$1,050 to fill a 500-gallon tank; between 2005 and 2010, prices averaged $1.73-$2.66 a gallon, or $690-$1,070 to fill a 500-gallon tank. With three to five fill-ups per six-month season, total winter costs could be $2,000-$5,500.
  • Propane is a byproduct of oil and gas production, and in the past propane prices rose and fell in tandem with the cost of crude oil. However, more than half the propane produced in the United States now comes from liquids brought to the surface by drilling for natural gas in shale rock, so propane prices are currently following the more stable costs of natural gas.
Related articles: Propane Tank, Heating Oil, Heating Oil Tank

What should be included:
  • Residential storage tanks are typically 120, 250, 500 or 1,000 gallons, either above-ground or underground. For safety, propane tanks should only be filled to about 80% of total capacity.
  • Propane is sold by private companies. Some homeowners own their propane tank, while others rent or lease it from the propane company. Homeowners who own their tank can shop around for the best price for each delivery, but will have to pay any increases in the market price; they're also responsible for maintaining the tank.
  • With a pre-buy or fixed-price arrangement, consumers sign a contract in late summer or early fall for as much propane as they estimate they'll need for the entire winter. A contract can be a good deal if prices rise after the contract is signed; this happens most years because demand is higher in the winter, but prices can be unpredictable.
Additional costs:
  • Some companies charge separate fees of $5-$100 or more per item for delivery, hazmat safety, administrative costs, setting up payment plans, invoicing, fuel surcharges or other services. For example, in September 2012 Amerigas[2] charged a $9.59 HazMat & Safety compliance fee and $99 for setting up a fixed-price, 12-month payment plan.
  • With a company-owned propane tank, often the company requires that a certain amount of propane be used each heating season, and may charge a fee (typically $50-$100) if usage drops below the minimum.
  • Many propane suppliers offer new-customer incentives varying from a specific amount of free propane (typically 50-100 gallons) to a discounted price (roughly 5 50 cents per gallon, although it varies significantly). Be aware of the difference between introductory pricing and the standard rate after the "new customer" period ends.
  • Some companies offer discounts of 5 cents to 15 cents per gallon if the account is paid promptly (such as within seven days of delivery) or for automatic-fill customers. Companies also offer a bonus (50-100 gallons free or a $50-$75 credit) for referring someone who becomes a leased tank customer.
  • Work with neighbors to negotiate a group rate for deliveries, or look for an established local fuel cooperative like The Sacandaga Group[3] in New York or Our Town Energy Alliance[4] in New Hampshire. For a moderate annual membership fee (typically $20-$30), these buying groups negotiate a discounted rate; this varies considerably but can be less than the market rate by roughly 10 cents to $1 or more a gallon.
  • The US Department of Health & Human Services provides information about the Low Income Home Energy Assistance Program (LIHEAP[5] ), helping helps low-income households meet urgent home energy needs. LIHEAP is funded by the federal government but handled by each state[6] , so eligibility rules and assistance varies.
Shopping for propane:
  • Most companies require that new customers file a credit application before propane is delivered, unless the delivery is paid for with cash, according to the Oklahoma LP Gas Research, Marketing and Safety Commission[7] .
  • Large, national propane chains include AmeriGas[8] , Ferrell Gas[9] and Suburban Propane[10] .
  • The National Propane Gas Association provides referrals to propane retailers[11] by zip code.
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What People Are Paying - Recent Comments
Cost of Propane
Amount: $688.00
Posted by: J. Knight in Cambridge Springs, PA.Posted: March 12th, 2014 07:03AM
Company: South hall Gas
Propane in our area has now jumped to $3.06 a gallon. Funny how PA is supposed to have an abundance of natural gas that we would be gouged so much for propane.
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high cost per gallon
Amount: $4.35
Posted by: rose sullivan in York, ME.Posted: March 4th, 2014 08:03AM
Company: Eastern Propane
How can they charge so much more than any of the prices I see quoted here? We have a propane tank in our condo in York, Maine which they own. It just keeps going up and up. Doesn't anyone control this price gouging?
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Propane shortage
Amount: $1,600.00
Posted by: Crivitz in peshtigo, WI.Posted: February 11th, 2014 04:02PM
Company: Ferrellgas company
This is what my 82-year-old father had to pay for one months supply of propane. His Social Security check is only $1300 a month. Our church just down the road paid about a $1.29 a gallon with Chartered fuels. Next year my father will be buying his propane from Chartered fuels.
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Rip off?
Amount: $500.00
Posted by: Lois in Evans, WV.Posted: January 26th, 2014 05:01AM
Company: AmeriGas
How can a 800-1000 sq. ft. 15 year old home use so much propane! A small 2 bedroom home with the thermostat set at 66-68. I supplement with a electric oil heater, close off bedrooms, and propane just disappears. It's like I'm paying for two houses! I've had homes with electric baseboard heat and natural gas. Propane sucks. I pay so much to be so cold every winter! I'm just trying to
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extra charge for delivery of propane
Amount: $200.00
Posted by: boop in towanda, PA.Posted: January 9th, 2014 01:01PM
Company: bluhms gas sales
I ran out of propane during the called them 1st thing in morning they charged me $200.00 extra because it wasn't on normal delivery day
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Winter Fill Up
Amount: $1.99
Posted by: Fuscia in Madison, GA.Posted: December 11th, 2013 06:12PM
Company: Valley Propane
This is my first propane fueling. I hope it's a decent price.
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Propane costs for year2013, pre buy
Amount: $1,200.00
Posted by: Biffer in Hopkins, MI.Posted: June 25th, 2013 10:06AM
Company: Hopkins Propane
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price difference
Amount: $298.00
Posted by: disapointed in Black river falls, WI.Posted: February 28th, 2013 01:02AM
Company: tru gas
Just had a 172 units put in at $1.99 per unit. I talked to a lady down the street who uses a co op and she gets her propane for 1.59 per unit. I called and bitched low and beholed they matched the price. my brother lives 99 miles away he gets it for 1.28 per unit what the hell why the difference in price?
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Enoch, UT
Amount: $673.18
Posted by: S. Barlow in Enoch, UT.Posted: January 28th, 2013 10:01AM
Company: Amerigas
2 deliveries within a month... ($370.25 & $302.93, fees & taxes were over $75 of it)
Including fees, averages out to $2.50 per gallon, which doesn't seem too bad compared to others posts, but either the house or the tank isn't holding the heat or gas well...its so much more expensive than natural gas heating!
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Sawyer Gas-Starke, FL EXPENSIVE!
Amount: $358.51
Posted by: Hans in Starke, FL.Posted: October 14th, 2012 04:10PM
Company: Sawyer Gas
66.6 gal @ 4.35 = $289.71
Fuel recovery fee $7.85
Hazmat fee $9.59
Tank rental (yr) $51.36
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Amount: $1,500.00
Posted by: a user in KOUTS, IN.Posted: September 30th, 2012 01:09PM
Company: KV GAS
$1.69 PER GAL
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Ferrellgas Propae... Expensive?
Amount: $103.47
Posted by: Virtualguy in Kill Devil Hills, NC.Posted: May 16th, 2012 04:05PM
Company: Ferrellgas
22.3 gallons, came to 103.47. That's 4.64/gallon. Sounds kinda high to me.
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Price of Propane gas
Amount: $0.00
Posted by: Randall W. Brown in Bremen, GA.Posted: September 9th, 2011 10:09AM
Company: Retired
I am trying my best to find the cost of a gallon of propane gas in Haealson county, Ga.
It appears to be a top secret!
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costs and comments of propane costs
Amount: $1.39
Posted by: Cheri in Cambridge, OH.Posted: March 27th, 2010 03:03AM
Company: Ferrellgas
Lowest prices for: Propane furnace - propane cooking stove - propane Hearthstone stove - use from Sept. 2009 - March 2010 - 187.5 gal. - average temp of house 70 degrees -
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